How Much Are Closing Costs in Colorado?

Selling your home in Colorado can yield a significant profit, especially if your property has appreciated in value. However, it’s important to remember that selling a home also comes with certain costs. As a seller, you’ll want to factor these expenses into your financial planning so you understand what your final returns may look like. So, how much does it cost to sell a house?

In this blog, we’ll go over closing costs when selling your home in Colorado – and how much you can expect to pay for each. Let’s get started!

What Are Closing Costs?

Selling a house is a big process and there will be a number of other people and industry professionals involved. As a result, some small expenses will come up before and after the sale – these are known as closing costs.

Because every home (and homeowner) is unique, average closing costs in Colorado can vary. For example, closing costs will differ depending on your representation and are usually more expensive if you aren’t working with a real estate agent. However, when answering the question “How much does it cost to sell your house?”, there are a few fees that will apply to any sale.

Buying and selling a home at the same time? Click here for advice on navigating this unique type of transaction!

Title Insurance

A home sale isn’t a handshake agreement. After you’ve finalized the terms of your sale, you will need to directly transfer the property title to the buyer.

Although title transfers are routine, problems can occasionally arise. With that in mind, it’s common for sellers in Colorado to cover the cost of title insurance, which protects your buyer from any issues that might come up during the transfer.

Prorated Property Taxes

You’re the legal owner of your home all the way up until the closing day. With that in mind, you’ll be responsible for paying property taxes for the months and weeks of the year before closing.
Property taxes are your responsibility until the closing date, as you retain legal ownership of the home. This means you’ll have to pay property taxes for the period leading up to the closing, even if it includes only part of a month or year.

Legal Expenses

In addition to working with a real estate agent, you may also work with a lawyer on the closing of your home sale. If you do, this will be another closing cost to budget for. Legal costs can vary quite significantly based on the work involved and any complexities that may arise during closing. Your Realtor can help you estimate whether or not you’ll require the services of a real estate attorney and how much they might cost.

Incentives & Contingency Related Costs

During your home sale, you may find yourself on the hook for certain costs related to meeting contingencies or incentivizing buyers. For example, a buyer could request certain repairs (paid for by you) as part of the sale agreement. While not one of the most common seller closing costs in Colorado, they may impact your sale.

Looking for more home-selling advice? Explore these related blogs next!

What Does it Cost to Hire a Realtor in Colorado?

One of the biggest expenses you’ll face when selling a home in Colorado is Realtor or real estate agent fees. Depending on who you ask, these may or may not fall under the umbrella of closing costs. Either way, it’s important to understand how real estate agent commissions work, and how you can account for them when you sell your house.

Having a real estate agent by your side as a home seller is essential, but their expertise does come at a cost. Rather than charge a static fee, most Realtors in Colorado have a set commission rate based on the degree of services they provide. Keep in mind that you’re not just paying commission for your agent, but the buyer’s agent too.

Every agent is unique and it also depends on your local market, however, average commission rates (combined between buyers’ and sellers’ agents) can be as much as 7%.

Another thing to remember as you search for a real estate agent is that you get what you pay for. While there are some professionals who advertise or charge a “discount rate” for selling homes, you won’t be getting the same level of service or expertise to support your sale. As a result, you could actually lose money by trying to save it.

Selling Your House? I Can Help

If you’re looking to sell your Denver home as quickly as possible, you’ve come to the right place! Alana Hankins Group has been selling properties across the Denver Metro Area for more than 20 years.

Using our adaptive selling strategies, our team has consistently secured high prices for our sellers, setting records for price-per-square-foot in many Denver Metro Area neighborhoods! We know Denver buyers, their expectations and their behaviors – allowing us to craft a personalized strategy for your home sale.